ENMAX POWER CORPORATION Distribution AUC Rule 005: ANNUAL OPERATIONS FINANCIAL AND OPERATING REPORTING For the Year Ended December 31, 2017 $M

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1 ENMAX POWER CORPORATION Distribution AUC Rule 005: ANNUAL OPERATIONS FINANCIAL AND OPERATING REPORTING For the Year Ended December 31, 2017 $M TABLE OF CONTENTS Schedule Schedule Name Page Sch 1 Summary of Revenue Requirement 2 Sch 1(A) Summary of Revenue Requirement Offsets 3 Sch 2 Summary of Return on Rate Base 4 Sch 2.1 Summary of Mid Year Rate Base 5 Sch 2.2 Summary of Mid Year EPC Total Capital Structure 6 Sch 2.3 Schedule of Debt Capital Employed 7 Sch 3 Summary of Operating and Maintenance Expense 9 Sch 4 Summary of Depreciation Expense Net of CIAC Amortization 10 Sch 4.1 Capital Assets Continuity Schedule Capital Assets and Accumulated Depreciation 11 Sch 4.2 Summary of Capital Additions Utility Plant Net of CIAC 13 Sch 6 Summary of Customers, Energy and Revenue 14 Sch 7 AESO Charges (SAS Costs) 15 Sch 8 Summary of Payroll and Manpower Statistics 16 Sch 9 Summary of Reserve / Deferral Accounts 17 Sch 10 Reconciliation of Audited Statements of Earnings and Comprehensive Income to N 18 Sch 11 Reconciliation of Audited Balance Sheets 20 Sch 12.1 Explanations 24

2 Table of Contents ENMAX POWER CORPORATION Distribution Summary of Revenue Requirement For the Year Ended December 31, 2017 $M SCHEDULE 1 Line Description (To) (From) 2017 Actual 2016 Actual Actual to Prior Year % 1 Return on Rate Base Sch % 2 System Access Charge Sch % 3 Operating and Maintenance Sch % 4 Depreciation and Amortization Sch % 5 Hearing Costs Sch % 6 Pension Accrual to Cash Adjustment Sch 3 (0.380) (1.655) (129.8%) 7 Subtotal % 8 9 Revenue Requirement Offsets Sch 1(A) (6.582) (5.463) (1.119) (20.5%) Revenue Requirement Sch % Totalling of columns and rows may be influenced by rounding. 2

3 Table of Contents ENMAX POWER CORPORATION Distribution Summary of Revenue Requirement Offsets For the Year Ended December 31, 2017 $M SCHEDULE 1(A) Line Description (To) (From) 2017 Actual 2016 Actual Actual to Prior Year % 1 Distribution, Network & Other Revenue 2 Pole and Duct Rental Revenue % 3 Miscellaneous Revenue (0.023) (3.7%) 4 Contractual Services Revenue % 5 Subtotal % 6 7 Distribution, Network & Other Expense 8 Pole and Duct Rental Expense % 9 Miscellaneous Expense % 10 Contractual Services Expense % 11 Subtotal % Regulated Revenue Services 14 Electrical Services Calgary Zone Revenue (0.172) (9.3%) 15 Electrical Services Calgary Zone Expense (0.205) (16.8%) 16 Subtotal % Unregulated Revenue Services 19 Calgary Water Revenue % 20 Calgary Water Expense % 21 Subtotal (0.500) (0.413) (0.087) (21.2%) Municipalities Revenue % 24 Municipalities Expense (1.840) (1.817) (0.023) (1.3%) 25 Subtotal % Fully Allocated Costs Municipalities and Water % Other Miscellaneous Revenue (0.066) (100.0%) Total Revenue Requirement Offsets Sch 1 Sch % Totalling of columns and rows may be influenced by rounding. 3

4 Table of Contents ENMAX POWER CORPORATION Distribution Summary of Return on Rate Base For the Year Ended December 31, 2017 $M SCHEDULE ACTUAL Line Description (To) (From) Mid Year Capital Ratio Prorated Rate Base Cost Rate % Return $ Actual to Prior Year % 1 Long Term Debt Sch 2.1 1, % % % 2 Common Stock Equity Sch 2.1 1, % % % 3 Mid Year No Cost Capital Sch 2.1 (1.311) 0.00% % % 4 Mid Year Invested Capital Sch 2.1 1, % 1, Return on Mid Year Rate Capital Sch % NOTE: On a normalized basis, EPC's 2017 ROE is below the rate of return of 8.5% allowed by the Commission. The 9.93% return shown on this table is overstated because it includes revenue relating to prior years that has been recognized in 2017 because of accounting rules relating to revenue recognition. The 2017 normalized ROE is 8.33% which is 1.36% lower than shown in schedule ACTUAL Line Description (To) (From) Mid Year Capital Ratio Prorated Rate Base Cost Rate % Return $ 1 Long Term Debt Sch 2.1 1, % % Common Stock Equity Sch 2.1 1, % % Mid Year No Cost Capital Sch 2.1 (1.093) 0.00% % Mid Year Invested Capital Sch 2.1 1, % 1, Return on Mid Year Rate Capital Sch Totalling of columns and rows may be influenced by rounding. 4

5 Table of Contents ENMAX POWER CORPORATION Distribution Summary of Mid Year Rate Base For the Year Ended December 31, 2017 $M SCHEDULE 2.1 Line Description (To) (From) 2017 Actual 2016 Actual Actual to Prior Year % 1 Gross Plant in Service Utility 2 Opening Balance % 3 Closing Balance % 4 Mid Year Gross Utility Plant in Service % 5 6 Accumulated Depreciation Utility 7 Opening Balance % 8 Closing Balance % 9 Mid Year Accumulated Depreciation % Contributions in Aid of Construction 12 Opening Balance % 13 Closing Balance % 14 Mid Year Contributions % Amortization of Contributions 17 Opening Balance % 18 Closing Balance % 19 Mid Year Utility Amortization of Contributions % Mid Year Net Plant in Service % Necessary Working Capital % 24 Mid Year No Cost Capital (1.311) (1.093) (0.218) (19.9%) Mid Year Rate Base Sch % Year End Plant in Service Sch % Totalling of columns and rows may be influenced by rounding 5

6 Table of Contents ENMAX POWER CORPORATION Distribution Summary of Mid Year EPC Distribution Capital Structure For the Year Ended December 31, 2017 $M SCHEDULE 2.2 Line Description (To) (From) 2017 Actual 2016 Actual 2017 Actual Mid Year Capital Prior Year Mid Year Capital Actual to Prior Year % 1 Long Term Debt Sch % 2 Common Equity Sch % 3 4 Total Invested Capital % Please note that the 2016 year end actual debt to equity split is at the deemed structure however the mid year is not. It is not possible to get both the year end and mid year at the deemed in 2016 because there was a change in Generic Cost of Capital between 2015 & Any change to either debt or equity to get the mid year inline with the deemed structure causes the year end to not balance. All numbers disclosed above are Distribution only and not Total EPC. Totalling of columns and rows may be influenced by rounding. 6

7 Table of Contents ENMAX POWER CORPORATION Distribution Schedule of Debt Capital Employed For the Year Ended December 31, 2017 $M SCHEDULE ACTUAL Line (To) (From) Issue Date Maturity Date Coupon Rate Principal Outstanding at Year End Carrying Cost Average Cost of Debt 1 23 Mar Mar % Jun Jun % Jun Jun % Jun 07 1 Jun % Jun Jun % Jun Jun % Jun Jun % Jun Jun % Jun Jun % Jun Jun % Jan Jun % Jan Jun % Jun Jun % Jun Jun % Jun Jun % Jun Jun % Jun Jun % Jun Jun % Jun Jun % Jun Jun % Jun Jun % Jun Jun % Jun Jun % Jun Jun % Jun Jun % Jun Jun % Jun Jun % Jun Jun % Jun Jun % Jun Jun % Jun Jun % Jun Jun % Jun Jun % Dec Dec % Dec Dec % Dec Dec % Dec Dec % Sch 2.2 Total Long Term Debt % 41 Prior Year % Sch 2.2 Mid Year % Totalling of columns and rows may be influenced by rounding. 7

8 Table of Contents ENMAX POWER CORPORATION Distribution Schedule of Debt Capital Employed For the Year Ended December 31, 2017 $M SCHEDULE ACTUAL Line (To) (From) Issue Date Maturity Date Coupon Rate Principal Outstanding at Year End Carrying Cost Average Cost of Debt 1 23 Mar Mar % Jun Jun % Jun Jun % Jun Jun % Jun 07 1 Jun % Jun Jun % Jun Jun % Jun Jun % Jun Jun % Jun Jun % Jun Jun % Jan Jun % Jan Jun % Jun Jun % Jun Jun % Jun Jun % Jun Jun % Jun Jun % Jun Jun % Jun Jun % Jun Jun % Jun Jun % Jun Jun % Jun Jun % Jun Jun % Jun Jun % Jun Jun % Jun Jun % Jun Jun % Jun Jun % Jun Jun % Jun Jun % Jun Jun % Jun Jun % Jun Jun % Sch 2.2 Total Long Term Debt % 41 Prior Year % Sch 2.2 Mid Year % Please note that the above schedules represent Distribution's debt and not the total for EPC (Distribution and Transmission). Totalling of columns and rows may be influenced by rounding. 8

9 Table of Contents ENMAX POWER CORPORATION Distribution Summary of Operating and Maintenance Expense For the Year Ended December 31, 2017 $M SCHEDULE 3 Line Description (To) (From) 2017 Actual 2016 Actual Actual to Prior Year % 1 Operating, Maintenance & Administration Expense 2 Distribution % 3 General % 4 Executive Office % 5 Human Resources (0.039) (1.3%) 6 Legal and Regulatory % 7 Corporate Secretariat (0.079) (13.5%) 8 Government and Media Relations (0.299) (24.8%) 9 Finance and CFO (0.366) (10.9%) 10 Facilities % 11 Information Technology % 12 Corporate Costs (0.782) (25.0%) 13 Operating Expense Capitalized (11.314) (10.483) (0.831) (7.9%) 14 Operating Expense Billable Projects (1.186) (1.256) % 15 Other % 16 Total Operating, Maintenance and Administration Sch 1 Sch % Hearing Costs Sch 1 Sch % 19 Pension Accrual to Cash Adjustment Sch 1 Sch 10 (0.380) (1.655) (129.8%) Total Utility Operating and Maintenance Costs % Totalling of columns and rows may be influenced by rounding. 9

10 Table of Contents ENMAX POWER CORPORATION Distribution Summary of Depreciation Expense Net of CIAC Amortization For the Year Ended December 31, 2017 $M SCHEDULE 4 DEPRECIATION EXPENSE NET OF CIAC AMORTIZATION Line Description (To) (From) 2017 Actual 2016 Actual Actual to Prior Year % 1 Distribution Driven Transmission Projects (DDTP) Land % Buildings (0.170) (32.6%) Site Development % Substation Equipment % Telecontrol % Supervisory % Land Rights % Wood Poles % Steel Towers % Steel Poles (0.000) 0.0% Insulators % Overhead Conductor % Underground Conduit % Trans 69kV Conduit % Manholes % Underground Cable LPOF % Underground Cable HPOF % Underground Cable Solid Dielectric % Overhead Aluminum Conductor (0.000) 0.0% 21 Subtotal DDTP % Distribution , 471, 490 & 491 Land and Land Rights % & 492 Buildings (0.010) (65.9%) & 4931 Poles % & 494 Conductors % & 495 Underground Facilities % & 496 Underground Cable % & 497 Transformers % & 498 Telecontrol % Meters % General Assets % Insulators % 35 Subtotal Distribution % General Land % Structures and Improvements % Office Furniture and Equipment % Vehicles % Tools and Instruments (0.073) (5.5%) Radios % Computer Systems Software (0.000) 0.0% Computer Systems Hardware % Computer Systems Enterprise Software % Load Settlement Software (0.001) (2.1%) Software Desktop Applications (0.003) (1.1%) Software Departmental Applications % Computer Hardware Desktop/Laptop % Computer Hardware Infrastructure % 52 Subtotal General % Other 55 Construction Funds Collected from Others & AOH Cap (1.451) (1.407) (0.044) (3.1%) 56 AFUDC/IDC Adjustments % 57 Capital Accrual (0.010) % 58 Other Distribution % 59 Problem Entries % 60 Other % 61 Subtotal Other (1.410) (1.380) (0.030) (2.2%) Total Depreciation Expense Sch 1 Sch % Totaling of columns and rows may be influenced by rounding. 10

11 ENMAX POWER CORPORATION Distribution Capital Assets Continuity Schedule Capital Assets and Accumulated Depreciation Net of CIAC For the Year Ended December 31, 2017 $M Table of Contents SCHEDULE 4.1 PART 1 CAPITAL ASSETS NET OF CIAC 2017 ACTUAL 2016 ACTUAL Line Description (To) (From) Opening Balance Additions Retirements Capital Expenditures Closing Balance Opening Balance Additions Retirements Capital Expenditures Closing Balance 1 Distribution Driven Transmission Projects (DDTP) Land Buildings Site Development (0.144) Substation Equipment (2.027) Telecontrol Supervisory Land Rights Wood Poles (0.014) Steel Towers Steel Poles Insulators Overhead Conductor Underground Conduit (0.019) Trans 69kV Conduit Manholes Underground Cable LPOF Underground Cable HPOF Underground Cable Solid Dielectric Overhead Aluminum Conductor Subtotal DDTP (1.893) Distribution , 471, 490 & 491 Land and Land Rights & 492 Buildings & 4931 Poles (1.455) (3.283) & 494 Conductors (0.604) (0.523) & 495 Underground Facilities (0.231) (0.175) & 496 Underground Cable (1.045) (1.726) & 497 Transformers (2.028) (2.956) & 498 Telecontrol (0.172) (0.268) Meters (1.474) (1.305) General Assets Insulators Subtotal Distribution (7.009) (10.236) General Land Structures and Improvements Office Furniture and Equipment Vehicles (3.234) (1.464) Tools and Instruments Radios Computer Systems Software Computer Systems Hardware Computer Systems Enterprise Software (32.126) Load Settlement Software (4.462) Software Desktop Applications (0.045) Software Departmental Applications (1.209) Computer Hardware Desktop/Laptop Computer Hardware Infrastructure Subtotal General (3.234) (38.763) Other 55 Construction Funds Collected from Others & AOH Cap (46.266) (3.572) (49.838) (45.783) (0.483) (46.266) 56 AFUDC/IDC Adjustments Capital Accrual (0.223) Other Distribution Problem Entries Other Subtotal Other (43.829) (2.858) (46.687) (43.790) (0.039) (43.829) Total Gross Plant in Service (10.243) (48.999) Capital Work in Progress (WIP additions in Sch Total Utility (10.243) (48.999)

12 ACCUMULATED AMORTIZATION NET OF CIAC 2017 ACTUAL 2016 ACTUAL PART 2 Line Description (To) Net Cost of Closing (From) Opening Balance Additions Retirements Retirement Balance 2016 Actual Additions Retirements Net Cost of Retirement Closing Balance 68 Distribution Driven Transmission Projects (DDTP) Land Buildings Site Development Substation Equipment Telecontrol Supervisory (0.004) Land Rights Wood Poles (0.153) (0.038) Steel Towers Steel Poles Insulators Overhead Conductor Underground Conduit Trans 69kV Conduit Manholes Underground Cable LPOF Underground Cable HPOF Underground Cable Solid Dielectric Overhead Aluminum Conductor Subtotal DDTP (0.004) Distribution , 471, 490 & 491 Land and Land Rights & 492 Buildings & 4931 Poles (1.455) (0.048) (3.283) (0.932) & 494 Conductors (0.604) (0.523) (0.714) & 495 Underground Facilities (0.231) (0.746) (0.175) (0.615) & 496 Underground Cable (1.045) (0.572) (1.726) (1.235) & 497 Transformers (2.028) (1.113) (2.956) (0.362) & 498 Telecontrol (0.172) (0.152) (0.268) (0.058) Meters (1.474) (1.305) General Assets Insulators Subtotal Distribution (7.009) (2.311) (10.236) (3.917) General Land Structures and Improvements Office Furniture and Equipment Vehicles (3.234) (1.464) Tools and Instruments Radios Computer Systems Software Computer Systems Hardware Computer Systems Enterprise Software (32.126) Load Settlement Software (4.462) Software Desktop Applications Software Departmental Applications (1.209) Computer Hardware Desktop/Laptop Computer Hardware Infrastructure Subtotal General (3.234) (38.763) Other 122 Construction Funds Collected from Others & AOH Cap (13.937) (1.451) (15.388) (12.530) (1.407) (13.937) 123 AFUDC/IDC Adjustments (0.011) Capital Accrual (0.010) Other Distribution Problem Entries Other (0.066) (0.066) (0.066) (0.066) 128 Subtotal Other (12.708) (1.410) (14.118) (12.173) (1.380) (12.708) Total Accumulated Depreciation Plant (10.243) (2.210) (48.999) (3.037) Net Year End Plant in Service Sch

13 Table of Contents ENMAX POWER CORPORATION Distribution Summary of Capital Additions Utility Plant Net of CIAC For the Year Ended December 31, 2017 $M SCHEDULE 4.2 UTILITY PLANT NET OF CIAC 2017 ACTUAL 2016 ACTUAL Line Description (To) (From) Opening CWIP Net Capital Expenditures Capital Additions Closing CWIP Balance Adjusted Opening CWIP Adjusted Capital Expenditures Capital Additions Closing CWIP Balance Adjusted CAPITAL ADDITIONS Actual to Prior Year % 1 Distribution 2 Residential Development % 3 Non Residential Development % 4 Residential & Non Residential Development % 5 System Infrastructure Development (Growth) % 6 System Infrastructure Development (Quality of Supply) % 7 Asset Replacement / Modification % 8 Annexation % 9 AESO Required Capital Contributions (1.579) (1.926) % 10 Distribution Automation (1.150) (41.3%) 11 Subtotal Distribution % Regulated Market Services 14 Revenue Metering (0.247) (6.8%) 15 Client Services % 16 Meter Data Management % 17 Retail Access Support % 18 Other Wires Retail Access Program (WRAP) Projects (0.000) (0.000) (0.003) (0.000) % 19 Subtotal Regulated Market Services (0.247) (6.8%) Information Technology 22 Computer Software % 23 Computer Hardware % 24 Distribution Strategic Technology Application Roadmap (D STAR) % 25 Control Centre System Operations % 26 Subtotal Information Technology % General Plant 29 Buildings % 30 Substation Building Upgrades % 31 Office Equipment & Furniture % 32 Leasehold Improvements (0.004) (100.0%) 33 Subtotal General Plant % Other 36 Capital Tools % 37 Vehicle & Equipment Acquisition & Replacement (0.000) % 38 Support Services Replacement & Upgrade (0.412) (0.191) % 39 Outage Management System % 40 Other Additions % 41 Subtotal Other (0.191) % Adjustment to Admin Overhead (0.619) (3.149) (3.523) (0.245) (0.366) (0.619) (3.776) (1,495.1%) 44 AFUDC Inventory & IDC to AFUDC Adjustment (0.000) (0.000) (0.000) (0.000) % Subtotal % Capital Deposits (16.959) (12.259) (15.249) (1.710) (16.959) % Total Sch % Less: Dismantling Expense (Removal Costs Sch Total Capital Additions

14 ENMAX POWER CORPORATION Distribution Summary of Customers, Energy and Revenue For the Year Ended December 31, 2017 Table of Contents SCHEDULE 6 Line Description (To) (From) 2017 Actual 2016 Actual Actual to Prior Year % 1 Residential (Note 1) 2 Customers Average 457, , , % 3 Energy Sales (MWh) 2,954, ,881, , % 4 Revenue ($m) % 5 6 kwh per Customer 6, , % 7 Cents/kWh % 8 9 Commercial (Note 2) 10 Customers Average 36, , % 11 Energy Sales (MWh) 6,477, ,320, , % 12 Revenue ($m) % kwh per Customer 176, , , % 15 Cents/kWh % Street & Space Lights 18 Energy Sales (MWh) 68, , (24, ) (26.4%) 19 Revenue ($m) (0.641) (20.1%) Cents/kWh % Balancing Pool Allocation Rider (33.675) % 24 Other Revenue & Adjustments (Note 3) % Total Utility Revenue Sch 1 Sch % Note 1: Includes Farm Note 2: Includes Industrial Note 3: Timing of revenue recognition due to accrual entries Totalling of columns and rows may be influenced by rounding. 14

15 ENMAX Power Corporation General Tariff Application AESO Charges (SAS Costs) $M Index of Schedules SCHEDULE 7 Line No. Description 2017 Actual 2016 Actual Actual to Prior Year % 1 Billing Determinants 2 Coincident Metered Demand (MW) 1,465 1, % 3 Billing Capacity (MW) 1,856 1, % 4 Metered Demand (MW) 1,642 1, % 5 Metered Energy at POD (GWh) 9,654 9, % 6 7 AESO Charges 8 DTS Charges 9 Interconnection Charge % 10 Operating Reserve Charge % 11 Voltage Control Charge % 12 Other System Support Services Charge % 13 Transmission Constraint Rebalancing Charge % 14 Total DTS % Under Frequency Load Shedding (UFLS) Credit (0.550) (0.538) (0.012) (2.2%) 17 AESO Rider C (8.222) (10.491) % 18 AESO Rider F (30.817) % 19 Prior Period Adjustments (0.237) (0.334) (343.1%) 20 TAC Deferral Account ( ) ( ) (16.042) (13.1%) 21 Other Costs/Adjustments (0.131) (0.700) % Total AESO Charges % Totalling of columns and rows may be influenced by rounding. 15

16 Table of Contents ENMAX POWER CORPORATION Distribution Summary of Payroll and Manpower Statistics For the Year Ended December 31, 2017 $M SCHEDULE 8 SALARIES, WAGES AND EMPLOYEE BENEFITS Line Description (To) (From) 2017 Actual 2016 Actual Actual to Prior Year % 1 Salaries and Wages 2 Transmission Operations % 3 Distribution Operations % 4 Retail Operations % 5 Transmission Capital % 6 Distribution Other Labour (23.904) (20.260) (3.644) (18.0%) 7 Retail Capital % 8 Other % 9 10 Salaries and Wages Charged to Distribution Utility Operations (0.821) (1.8%) Employee Benefits 13 Transmission Operations % 14 Distribution Operations % 15 Retail Operations % 16 Transmission Capital % 17 Distribution Other Capital % 18 Retail Capital % 19 Other % Benefits Charged to Distribution Utility Operations % EMPLOYEE ALLOCATION Line Description 2017 Actual 2016 Actual Actual to Prior Year % 22 Manpower Statistics ENMAX Power and ENMAX Corporate 23 FTE Complement Permanent % 24 FTE Complement Permanent (Allocated) (6.516) (8.5%) 25 FTE Complement Temporary % 26 FTE Complement Temporary (Allocated) % 27 Total Regular Employees (FTEs) % Total Temporary Employees (FTEs) % 30 Total Contract Staff (FTEs) % Total Manpower Distribution Utility Operations % Totalling of columns and rows may be influenced by rounding. 16

17 Table of Contents ENMAX POWER CORPORATION Distribution Summary of Reserve / Deferral Accounts For the Year Ended December 31, 2017 $M SCHEDULE 9 Line Description (To) (From) 2017 ACTUAL 2016 ACTUAL Opening Balance Adds Amortization Refunds / Write Offs Ending Balance Opening Balance Adds Amortization Refunds / Write Offs Ending Balance Actual to Prior Year % 1 List of Deferral Accounts 2 3 Transmission Access Charges Deferral (4.465) (99.935) ( ) (4.465) (869.5%) 4 AUC Flow Through Receivable (0.017) (0.117) % 5 Regulatory Receivable (10.441) (0.615) (0.087) (0.6%) 6 Regulatory Rider Payable (8.121) (6.947) (11.280) (3.562) (8.121) (14.5%) 7 Hearing Cost Reserve Account (1.311) (0.145) (1.312) (0.876) (0.500) (1.311) (0.001) 0.1% 8 9 Total Deferred Assets ( ) ( ) % Totalling of columns and rows may be influenced by rounding. 17

18 Table of Contents ENMAX POWER CORPORATION Distribution Reconciliation of Audited Statements of Earnings and Comprehensive Income to Net Income For the Year Ended December 31, 2017 $M SCHEDULE 10 Line Description (To) (From) DISTRIBUTION FINANCIAL STATEMENTS TOTAL ADJUSTMENTS TOTAL RULE REVENUE 2 3 Electricity Revenue Transmission and Distribution Revenue Sch ( ) SUMMARY OF ADJUSTMENT ENTRIES 7 Reclass of Transmission and Distribution Costs ( ) 8 Subtotal ( ) 9 10 Local Access Fees Revenue (95.849) SUMMARY OF ADJUSTMENT ENTRIES 12 Re class to remove Local Access Fee Revenue Collection on behalf of City of Calgary (95.849) 13 Subtotal (95.849) Contractual Services Revenue (15.187) (0.000) 16 SUMMARY OF ADJUSTMENT ENTRIES 17 Re class of Contractual Services Revenue to Revenue Requirement Offsets (10.115) 18 Adjustment to remove Water & Muni revenue & costs (5.072) 19 Subtotal (15.187) Other Revenue (14.651) SUMMARY OF ADJUSTMENT ENTRIES 23 Re class of Other Revenue to Amortization Expense (14.651) 24 Subtotal (14.651) TOTAL REVENUE Sch ( ) EXPENSES Electricity Costs Transmission and Distribution Costs Sch ( ) SUMMARY OF ADJUSTMENT ENTRIES 35 Reclass of Transmission and Distribution Revenue ( ) 36 Subtotal ( ) Local Access Fees Sch (95.849) (0.000) 41 SUMMARY OF ADJUSTMENT ENTRIES 42 Re class to remove Local Access Fee Revenue Collection on behalf of City of Calgary (95.849) 43 Subtotal (95.849) Contractual Services Expense (7.450) SUMMARY OF ADJUSTMENT ENTRIES 47 Adjustment to remove water & municipal costs (4.054) 48 Re class of Contractual Services Expense to Revenue Requirement Offsets (3.396) 49 Subtotal (7.450) 50 Totalling of columns and rows may be influenced by rounding. 18

19 Table of Contents ENMAX POWER CORPORATION Distribution Reconciliation of Audited Statements of Earnings and Comprehensive Income to Net Income For the Year Ended December 31, 2017 $M SCHEDULE 10 (To) (From) DISTRIBUTION FINANCIAL STATEMENTS Line Description TOTAL ADJUSTMENTS TOTAL RULE Operating and Maintenance Direct (0.754) Operating and Maintenance Common Costs (4.547) Operating and Maintenance Common Costs Billable Projects (0.602) Operating and Maintenance Corporate Costs (4.846) Subtotal Operating and Maintenance Sch (10.750) SUMMARY OF ADJUSTMENT ENTRIES 57 Re class of Allocated Interest from OMA Expense to Interest Expense (0.782) 58 Re class allocated Revenue from OMA Expense to Other Revenue (0.740) Adjustment for allocated assets reverse allocated amortization (7.364) Adjustment to remove software as a Service (1.860) Adjustment for Bonus exclude Financial Metrics for EPC Employees (1.086) 63 Corporate MTIP & 50 percent of LTIP allocated to Power and Trans Re class of Common Cost & Corporate Billable Projects to Revenue Requirement Offsets Subtotal (10.750) Hearing Costs Sch Pension Accrual to Cash Adjustment Sch (0.380) (0.380) 70 SUMMARY OF ADJUSTMENT ENTRIES 71 Re class from OMA Expense to Pension Accrual to Cash Adjustment (0.380) 72 Subtotal (0.380) Amortization Sch (7.913) SUMMARY OF ADJUSTMENT ENTRIES 76 Adjustment to record allocated amortization (8.055) 77 Adjustment to Amortization on SSC Project Adjustment AFUDC vs IDC Reg Asset Accum Amortization (0.034) 79 Subtotal (7.913) Interest Expense SUMMARY OF ADJUSTMENT ENTRIES 83 Re class of Shared Services Interest from OMA Expense to Interest Expense Adjustment for deemed interest calculation Adjustment to re class IDC to Balance Sheet Subtotal Income Tax Revenue Requirement Offsets Total Revenue (10.717) (10.717) 91 Revenue Requirement Offsets Total Expense Subtotal Revenue Requirement Offsets Sch 1(A) (6.581) (6.581) 93 SUMMARY OF ADJUSTMENT ENTRIES 94 Re class of Contractual Services Revenue to Revenue Requirement Offsets (10.115) 95 Re class of Other Revenue to Revenue Requirement Offsets (0.602) 96 Re class of Contractual Services Expense to Revenue Requirement Offsets Re class of Common Cost Billable Projects to Revenue Requirement Offsets Subtotal (6.581) TOTAL EXPENSES ( ) RETURN (1.423) Totalling of columns and rows may be influenced by rounding. 19

20 Table of Contents ENMAX POWER CORPORATION Distribution Reconciliation of Audited Balance Sheets For the Year Ended December 31, 2017 $M SCHEDULE 11 Line Description (To) (From) DISTRIBUTION FINANCIAL STATEMENTS TOTAL ADJUSTMENTS TOTAL RULE ASSETS 2 3 CURRENT ASSETS 4 5 Cash and Short Term Investments (0.184) (0.184) 6 7 Accounts Receivable Regulatory Receivables Inventory Other Current Assets Intercompany Receivables TOTAL CURRENT ASSETS NON CURRENT ASSETS Fixed Asset Inventory Year End Capital Work in Process (19.437) SUMMARY OF ADJUSTMENT ENTRIES 25 Adjustment for Balance Sheet Allocation (0.370) 26 CIAC Contributions in aid of Construction (19.067) 27 Subtotal (19.437) Year End Intangibles Capital Work in Process (0.000) SUMMARY OF ADJUSTMENT ENTRIES 31 Adjustment for Balance Sheet Allocation (0.000) 32 Subtotal (0.000) Capital Assets Net 1, ( ) 1, SUMMARY OF ADJUSTMENT ENTRIES 36 Adjustment for Enmax Balance Sheet Allocation CIAC Contributions in aid of Construction ( ) 38 AFUDC/IDC Adjustment asset (0.643) 39 AFUDC vs IDC Reg Asset Accum Amortization Subtotal ( ) Intangible Assets SUMMARY OF ADJUSTMENT ENTRIES 44 Adjustment for Enmax Balance Sheet Allocation Adjustment to record IT SaaS project Adjustment to record HRIS System Subtotal Long Term Regulatory Receivables Investment in Subsidiaries Other Long Term Assets Long Term Future Income Taxes Asset Financial Assets Long Term TOTAL NON CURRENT ASSETS 1, ( ) 1, TOTAL ASSETS 1, ( ) 1, Totalling of columns and rows may be influenced by rounding. 20

21 Table of Contents ENMAX POWER CORPORATION Distribution Reconciliation of Audited Balance Sheets For the Year Ended December 31, 2017 $M SCHEDULE 11 (To) (From) DISTRIBUTION FINANCIAL STATEMENTS TOTAL ADJUSTMENTS TOTAL RULE 005 Line Description 63 LIABILITIES CURRENT LIABILITIES Accounts Payable & Accrued Liabilities (0.000) Regulatory Payable Income Tax Payable Other Current Liabilities Current Future Income Tax Liabilities Current Portion of Long Term Debt Intercompany Debt Intercompany Accounts Payable SUMMARY OF ADJUSTMENT ENTRIES 83 Adjustment for 2012 Deemed Interest Adjustment for 2013 IDC and AOH reclass Adjustment for 2013 Deemed Interest (1.325) 86 Adjustment for 2014 IDC and AOH reclass Adjustment for 2014 Deemed Interest (1.359) 88 Adjustment for 2015 IDC and AOH reclass Adjustment for 2015 Deemed Interest (2.659) 90 Adjustment for 2016 IDC and AOH reclass Adjustment for 2016 Deemed Interest (0.104) 92 Adjustment for 2017 IDC and AOH reclass Adjustment for 2017 Deemed Interest Subtotal Due To/Due From SUMMARY OF ADJUSTMENT ENTRIES 98 Adjustments Prior Years Adjustments 2017 (0.398) 100 Subtotal Current Portion of Deferred Revenue TOTAL CURRENT LIABILITIES Totalling of columns and rows may be influenced by rounding. 21

22 Table of Contents ENMAX POWER CORPORATION Distribution Reconciliation of Audited Balance Sheets For the Year Ended December 31, 2017 $M SCHEDULE 11 (To) (From) DISTRIBUTION FINANCIAL STATEMENTS TOTAL ADJUSTMENTS TOTAL RULE 005 Line Description NON CURRENT LIABILITIES Long Term Intercompany Debt Long Term Debt (8.405) (3.595) 111 SUMMARY OF ADJUSTMENT ENTRIES 112 Adjustment to align to Deemed Structure Employee Future Benefits SUMMARY OF ADJUSTMENT ENTRIES 117 Adjustment for 2012 Pension accrual to cash Adjustment for 2013 Pension accrual to cash Adjustment for 2014 Pension accrual to cash Adjustment for 2015 Pension accrual to cash Adjustment for 2016 Pension accrual to cash Adjustment for 2017 Pension accrual to cash (0.380) 123 Subtotal Other Liabilities CIAC Year End Capital Work in Process (19.067) SUMMARY OF ADJUSTMENT ENTRIES 129 Re class to remove CIAC to NON CURRENT ASSETS (19.067) 130 Subtotal (19.067) CIAC Contra Capital Asset ( ) SUMMARY OF ADJUSTMENT ENTRIES 134 Re class to remove CIAC to NON CURRENT ASSETS ( ) 135 Subtotal ( ) CIAC Accumulated Amortization ( ) SUMMARY OF ADJUSTMENT ENTRIES 139 Re class to remove CIAC to NON CURRENT ASSETS Subtotal Long Term Deferred Revenue Excluding CIAC Amortization & CIAC WIP Long Term Future Income Taxes Liability TOTAL NON CURRENT LIABILITIES 1, ( ) TOTAL LIABILITIES 1, ( ) 1, Totalling of columns and rows may be influenced by rounding. 22

23 Table of Contents ENMAX POWER CORPORATION Distribution Reconciliation of Audited Balance Sheets For the Year Ended December 31, 2017 $M SCHEDULE 11 (To) (From) DISTRIBUTION FINANCIAL STATEMENTS TOTAL ADJUSTMENTS TOTAL RULE 005 Line Description 150 SHAREHOLDER'S EQUITY Share Capital SUMMARY OF ADJUSTMENT ENTRIES 154 Adjustment to align to Deemed Structure Subtotal Retained Earnings (43.279) SUMMARY OF ADJUSTMENT ENTRIES 159 Adjustment for EPC Retained Earnings opening balance 2017 (26.502) 160 Adjustment to align to Deemed Structure (16.777) 161 Subtotal (43.279) Retained Earnings Net Income (1.423) SUMMARY OF ADJUSTMENT ENTRIES 165 Adjustment for 2017 Net Income (1.423) 166 Subtotal (1.423) Other Comprehensive Income (4.186) (4.186) TOTAL SHAREHOLDER'S EQUITY (15.807) TOTAL LIABILITIES & SHAREHOLDER'S EQUITY 1, ( ) 1, Totalling of columns and rows may be influenced by rounding. 23

24 Table of Contents ENMAX POWER CORPORATION Distribution Explanations HIGH LEVEL For the Year Ended December 31, 2017 $M SCHEDULE ACTUAL vs 2016 ACTUAL Line No. Schedule Schedule Line No Schedule Line No Description $M % Explanation 1 Sch 1(A) Summary of Revenue Requirement Offsets 2 Sch 1(A) 2 Pole and Duct Rental Revenue % Favourable variance due to higher revenue from Pole and Duct Rental charges. Shaw and TELUS signed a new agreement with new, higher rates taking effect in July of 2016 helping to increase revenue by $0.8M in Pole and Duct Rental Revenue. Additionally, there was an increase in number of poles and ducts that were rented due to expansion of the City. 3 Sch 1(A) 4 Contractual Services Revenue % The increase in 2017 revenues was mainly driven by an increase in minor service orders for Trouble Response. The increase in Trouble Response calls were largely due to adverse weather conditions such as snow storms, rains, etc.. In addition, there was an increase in customer driven jobs from Shaw Cable systems and the City of Calgary. 4 Sch 2.1 Summary of Mid Year Rate Base 5 Sch Gross Plant in Service Utility Opening Balance % 6 Sch Gross Plant in Service Utility Closing Balance % 7 Sch Accumulated Depreciation Utility Opening Balance % 8 Sch Accumulated Depreciation Utility Closing Balance % 9 Sch Contributions in Aid of Construction Opening Balance % 10 Sch Contributions in Aid of Construction Closing Balance % 11 Sch Amortization of Contributions Opening Balance % 12 Sch Amortization of Contributions Closing Balance % EPC's Distribution continues to expand to service new customers. The Mid Year Rate Base for the EPC Distribution system, net of CIAC, experienced a net growth of 6.6% (excluding Accumulated Amortization). Consistent with this expansion, Gross Plant in Service increased by 7.6% and gross CIAC increased by 11.3%. The increase in mid year rate base is mainly driven by an increase in Residential Development and System Infrastructure Development assets placed into service. See Schedule 4.2 variance explanations for further information. 13 Sch Necessary Working Capital % The increase is primarily attributed to an increase in the Transmission Access Charges (TAC) Deferral Account balance. This higher account balance is largely due to higher TAC charges, volume variances in SAS, and a refund of AESO deferral account adjustment. 14 Sch 2.2 Summary of Mid Year EPC Distribution Capital Structure 15 Sch Long Term Debt % Increase due to higher in service capital on a mid year basis. 24